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Read more from our special coverage on "OYO ROOMS"

"Growth of new age businesses like OYO Rooms can be further accelerated if they are protected against online payment risks and frauds," PayPal APAC Regional Merchant Services Vice-President Hamish Moline said.

The partnership with PayPal will enable OYO Rooms' customers to pay for their bookings in Malaysia and other Southeast Asian countries, the two companies said in a joint statement.

"This tie-up with PayPal will assist us in delivering a seamless payment experience through reduced friction during payment process. PayPal is a global leader in payments and we look forward to their network supporting our growth," said OYO Rooms COO, Abhinav Sinha.